Rising demand from the industry's major markets will bolster both profit and revenue.
New York, NY (PRWEB) July 04, 2014
The Transmission Line Construction industry has experienced strong growth over the past five years. This industry was unscathed during the recession because downstream electric power and telecommunications operators, as well as government agencies, increased their infrastructure investments. Aging electricity generation and transmission facilities required maintenance and upgrades. “Growing consumer demand for high-speed data also fuelled telecommunications infrastructure construction,” according to IBISWorld Industry Analyst David Yang. Over the five years to 2014, the downstream electric power, generation and transmission sector expanded at an annualized rate of 1.8%, which bolstered demand for infrastructure construction services. As a result, IBISWorld expects industry revenue to increase at an annualized rate of 4.1% to $6.9 billion over the period.
However, revenue is estimated to sharply decrease 12.8% in 2014. “Government expenditures slowed down over the past two years, causing construction activities to moderately contract,” says Yang. Private-sector infrastructure investments also experienced a slight lull due to high levels of construction activity in recent years.
The contraction will be temporary, however, and strong infrastructure investments over the next five years will fuel revenue growth. In particular, electric power infrastructure construction will accelerate as coal-fired facilities are gradually phased out. New renewable energy and natural gas power plants will need to be constructed to replace coal, and transmission lines must be installed to link generation facilities to the power grid. Additionally, demand for data will continue to grow, spurring new investments in fibre-optic networks and other high-speed data infrastructure. Telecommunications service providers will turn to industry operators to provide much-needed cable and fibre installation services.
Industry profitability moderately decreased compared with prerecession years, mostly due to high internal competition and revenue volatility. In the coming years, stable demand growth will translate to improved profit margins. The use of construction machinery, robotics and other technologies will also bolster operating efficiency over the period, further improving profit margins.
For more information, visit IBISWorld’s Transmission Line Construction in Canada industry report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld industry Report Key Topics
This industry provides design, construction, maintenance and repair services for electric power and telecommunications infrastructure, such as transmission lines, towers, cables, generating facilities, electricity substations and other related infrastructure.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.